NVIDIA reduced its approved customer list for advanced AI chips in Asia by more than 50%. The company implemented a new whitelist system across Singapore, Malaysia, and Japan. These stricter compliance checks aim to prevent the illegal re-export of high-end semiconductors to China.
The U.S. government pressured NVIDIA to close loopholes in existing export controls. NVIDIA staff now conduct on-site visits to data centers to verify operations. Personnel also interview end-users and audit contracts to confirm the legitimacy of buyers.
Smaller neo-cloud providers accounted for most of the removals after failing initial evaluations. This screening process highlights the operational challenges of navigating U.S. technology sanctions. The move may negatively impact NVIDIA's short-term sales within the Asian market.